Under what circumstances does the requirement for non-binding mediation not apply to Bee Organized?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the preceding paragraph, Franchisor and Franchisee agree this Sub-Article 18.G.(1) and, thereby, the prerequisite requirement of non-binding mediation, shall not, at Franchisor's election, apply to: (a) any claims or disputes related to or concerning a breach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief including, but not limited to, Franchisee's violation or purported violation of Article 6 of this Agreement; and/or (b) claims by either Franchisor or Franchisee under this Agreement that relates to either Franchisor's or Franchisee's failure to pay fees or other monetary obligations due under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, non-binding mediation is typically a prerequisite before either party can initiate arbitration for disputes related to the franchise agreement. However, there are specific circumstances where this requirement can be waived at Bee Organized's discretion.
Bee Organized can elect to bypass the non-binding mediation requirement for claims or disputes concerning a breach of the agreement by the franchisee. This includes situations where Bee Organized is entitled to injunctive relief, such as when a franchisee violates or allegedly violates Article 6 of the agreement, which likely covers proprietary or confidential information.
Additionally, the non-binding mediation requirement does not apply to claims by either Bee Organized or the franchisee related to the failure to pay fees or other monetary obligations due under the agreement. This means that if there is a dispute over unpaid royalties or other financial obligations, either party can proceed directly to arbitration without first engaging in mediation, if Bee Organized chooses. This election is solely at the discretion of Bee Organized, potentially giving them an advantage in resolving certain types of disputes more quickly.
This clause is important for prospective franchisees to understand, as it outlines specific scenarios where Bee Organized can bypass mediation and proceed directly to arbitration, potentially expediting dispute resolution in their favor. Franchisees should be aware of their obligations under the agreement, particularly regarding Article 6 and the timely payment of fees, to avoid situations where Bee Organized might elect to forgo mediation.